Gloucestershire firm signs Latin American licensing deal

Gloucestershire firm Versarien has signed a licensing deal with a Brazilian manufacturer.

The advanced materials engineering group has, in line with its strategy to monetise intellectual property through licensing, entered into a manufacturing licence agreement with Montana Química.

Montana is a Brazilian headquartered multinational business focused on the production and sale of paints, wood preservatives and other wood finishing products including stains and varnishes.

The deal covers the use of certain of the company’s proprietary graphene and related material dispersions and formulations in products to be manufactured and sold by Montana in South America.

Under the terms of the deal Versarien has granted a licence to Montana, for an initial period of five years, to use certain intellectual property and know-how owned by the Company in their business in South America.

Montana will pay Versarien initial fees of £50,000 in March 2024 in consideration of the know-how and technical assistance, including training, to be provided.

Once Montana commences manufacturing under the agreement, a further payment of £25,000 will be due to the Company, together with an amount equal to 5% of the total sales revenue earned from products manufactured using Versarien’s intellectual property and know-how  subject to minimum Royalty payments of £25,000 per year.

Dr Stephen Hodge, chief executive of Versarien, said: “The agreements with Montana are in line with Versarien’s strategy to be a manufacturing-light business in the UK and licence our patents, know-how and other intellectual property to key partners.

!We are very pleased to be partnering with Montana, a leading business in its markets in South America, and look forward to collaborating closely with them as they bring products enhanced by Versarien’s technology to the market.”